Mayor Brandon Johnson signed a wide-ranging executive order Wednesday meant to prevent corporations that carry out corrupt or abusive practices, including inhumanely assisting in aggressive federal deportation campaigns, from doing business with the city.
Citing an “unprecedented level of corporate corruption” nationally, the three-pronged order: prohibits contracts or subcontracts with a company that has committed workplace discrimination, wage theft, or a defined “public integrity violation” in the past five years; requires a company to disclose its diversity demographics, as well as any contracts it has with any other body of government, such as U.S. Immigration and Customs Enforcement (ICE); and creates a 12-member Ethical Procurement Standards Task Force.
“You think about workers’ rights, you think about voting rights, you think about the rights of the LGBTQ+ community. All of us are incredibly vulnerable right now. I’m working to do something about it,” Johnson told WBEZ in an interview Tuesday.
A public integrity violation includes some actions already banned in city code, such as a conviction of bribery. But unlike city code, it would apply to violations adjudicated outside a courtroom. For instance, a finding by a government oversight agency, like an inspector general or auditor, would also be disqualifying.
Johnson’s team cited Palantir, a data company profiting from contracts with ICE and the war in Gaza, as being among the corporations footing the bill for President Donald Trump’s ballroom under construction at the White House.
“We’re recognizing that these companies may be engaging in corrupt activities, but for a variety of reasons may not be subject to criminal penalties. Nonetheless, we don’t want them doing business with the city of Chicago,” said Johnson’s chief strategy officer, Sheila Bedi.
All current and future contractors and subcontractors will be required to certify that they have not committed a “public integrity violation” in the past five years, and don’t intend to for the length of a contract. The order directs the city’s chief procurement officer to come up with consequences for violating the new rules.
City code already bans contractors and subcontractors with any conviction involving theft, deceit, hate crimes, perjury, or treason. Those broader crimes don’t appear to be subject to the executive order, meaning they would still require a formal conviction to be disqualifying.
In response to Trump administration actions, the decree also contains new reporting requirements. Companies will have to disclose whether they hold contracts with other government or law enforcement agencies, which will then be made public. The order was prompted in part by a campaign called “Not With Our Money” that is pushing governments to use their purchasing power to dissuade companies from aiding or being complicit in militarized deportation campaigns.
“This is a way to say we want to look closely at what you’re doing, and if you’re doing corrupt things, then we’re not going to use taxpayer dollars to support that,” said Dorian Warren, a spokesperson for Not With Our Money.
The campaign is currently in talks with New York City, Newark, New Jersey and Minneapolis but “Chicago is the first city to take action,” he said.
According to the campaign’s research team, Chicago currently holds $3.19 billion in contracts with companies that also do business with ICE. The biggest contract is with the infrastructure consultant AECOM, which is overseeing the modernization of O’Hare Airport, according to the group.
But Bedi said the goal isn’t to nix companies for simply holding a contract with ICE.
It also requires a company to disclose whether it has been involved in any allegations of excessive force, unlawful detention, unconstitutional policing or discrimination in relation to their government contract, which could then trigger action.
Johnson and Bedi said the executive order would not apply to the private equity firm Stonepeak that is seeking to take over Chicago’s parking meters from the private company that currently owns them, because the parking meters are “an asset that we completely sold” and have no ownership interest in, Bedi said.
Stonepeak owns Omni International, an airline company criticized for carrying out deportation flights where detainees were allegedly shackled and denied food and water for more than 10 hours.
In response to recent news that the federal Equal Employment Opportunity Commission could stop requiring the collection of demographic data, the order also directs companies making more than $1 billion a year to disclose the composition of their corporate leadership, board of directors and their policies for promoting diversity.
The state already has a similar requirement for all publicly traded companies headquartered in Illinois with or without state contracts. The executive order would apply to large private companies seeking city business. All companies will also be required to report any efforts to recruit, hire, or promote formerly incarcerated people.
This is the sixth decree signed by Johnson this year, and the 26th of his term, as he turns to his executive power pen to avoid divisive political battles with a City Council majority that has grown increasingly distrusting of Johnson and his legislative efforts.
And it comes as Johnson prepares to announce whether he’ll run for reelection in a crowded field eager to unseat him.
“We certainly cannot rely upon a body of government when you have some members who are more interested in protecting the status quo in the interests of corporations,” Johnson said. “I have to do whatever is necessary.”